01. Memory Semiconductor Prices Set to Drop as Oversupply Impacts DRAM and NAND
Due to the decline in prices of general-purpose memory semiconductors caused by oversupply, it is forecasted that memory prices, including DRAM and NAND flash, will fall uniformly in the first quarter of this year. However, it is expected that high-value and advanced products, such as high-bandwidth memory (HBM), which have shown sustained robust demand following the emergence of the artificial intelligence (AI) market, will partially offset this trend.
According to market research firm TrendForce on the 1st, DRAM prices are expected to fall by 8 to 13% and NAND prices by around 10 to 15% in the first quarter of this year. TrendForce noted, "Memory companies will face an increase in inventory levels and deteriorating order demand in the first quarter of this year," adding that "the early inventory buildup by laptop manufacturers in anticipation of potential tariffs from the Trump administration has exacerbated the price decline."
Concerns have arisen in the industry that the semiconductor chill may be rekindled, as prices for server DRAMs, such as DDR5, and corporate solid-state drives (SSDs) have shifted downwards this year. However, demand for high-value memory related to AI, such as HBM and corporate SSDs, is expected to continue for now, leading to a prevailing outlook that a semiconductor recession similar to 2023 will not occur.
02. SiC and GaN Drive Power Semiconductor Market Growth by 2025
TechInsights has released its 2025 power semiconductor market outlook, highlighting the transformative role of silicon carbide (SiC) due to its efficiency, compact design, and cost-effectiveness. SiC is expanding beyond data centers into electric vehicle chargers, solar energy, storage, and industrial applications. The automotive sector is a significant driver, with the SiC market expected to surpass $2 billion by 2025. To meet growing demand, the industry is shifting to 200mm wafers, enhancing capacity and reducing costs.
The data center market is undergoing a significant transformation driven by AI, with the computing semiconductor market projected to reach $239 billion by 2025, boosting power semiconductor demand. Gallium nitride (GaN) semiconductors are gaining traction in consumer power supplies, driven by fast charging and USB power delivery needs, although its market size remains below $1 billion.
03. NXP Automotive Business Exceeds 50% of Total Revenue
NXP Semiconductors announced that its automotive business now accounts for over 50% of its total revenue, highlighting the company's growing dominance in the automotive semiconductor sector. At its recent Investor Day, NXP emphasized that its automotive division is expected to generate $7.1 billion in revenue in 2024, representing 57% of the company's total sales.
NXP's automotive business is a market leader in areas such as in-vehicle processors, radar systems, and connected car solutions. Its products are critical in enabling smart driving, electrification, and software-defined vehicles (SDVs), and it continues to strengthen its leadership with a comprehensive portfolio and robust technological expertise.
NXP's automotive business is expected to grow at a compound annual growth rate (CAGR) of 8-12% from 2024 to 2027, reaching $9.5 billion by 2027. Semiconductor content per vehicle is expected to grow at a mid-to-high single-digit rate, driven by increasing demand for electrification and vehicle intelligence.
04. Micron to Invest $2.17 Billion to Expand DRAM Production in the US
Virginia Governor Glenn Youngkin has announced that Micron Technology will invest $2.17 billion to expand its semiconductor plant in Manassas, Virginia. The expansion aims to enhance DRAM production for industrial, automotive, aerospace, and defense applications, creating 340 new jobs.
Earlier, Micron confirmed receiving $275 million in federal funding under the CHIPS and Science Act to upgrade the facility and relocate automotive DRAM production from Taiwan to the US. The project is also expected to generate 950 construction jobs and over 400 manufacturing positions.
05. TSMC has Price Increases of 5-10% for 3nm and 5nm processes
On December 29, it was reported that TSMC's US factory is expected to begin mass production in the first quarter of next year, using a 4-nanometer process with a monthly output of 10,000 12-inch wafers. The factory plans to produce for four major customers including Apple, Nvidia, AMD, and Qualcomm, with a target of reaching a monthly output of 20,000 wafers by mid-next year. The installation of equipment for the second phase of the factory has already begun, with mass production expected by mid-next year. The third phase of the factory is planned to produce 2-nanometer or 1.6-nanometer chips before 2030. The share of US semiconductor production has dropped from 37% two decades ago to 12%, and TSMC's US factory may help revive the manufacturing industry. However, due to insufficient supply chains, the cost is expected to be 30% higher than in Taiwan.
06. Intensified Semiconductor Foundry Competition: Japan and Korea Accelerate Market Share Contention
According to Trendforce's report on January 3, although the demand for consumer electronics has not yet recovered, the rise of artificial intelligence and flagship smartphones has driven the continued growth of advanced semiconductor manufacturing. The global foundry industry is expected to grow by 20% by 2025, with TSMC dominating the market. Japan and Korea are enhancing their competitiveness through large-scale investments.
Japan is investing in Rapidus to advance the development of 2nm chips, while South Korea plans to invest 20 trillion won to support its semiconductor industry, including the establishment of a company similar to TSMC, known as KSMC.